Third Party Logistics - 3PL

Third party logistics, better known as 3PL in the supply chain and freight forwarding industry, is basically the supply of outsourced services to the logistics sector.

3PL can be applied to various service contracts that manage the shipping and storing of product and inventory. A 3PL provider may provide both transportation and warehouse management or it can be a stand alone specialist provider of a single service.

The benefits of using third party logistics for production and manufacturing companies are that they can find providers that can assist with provision of raw materials that may otherwise be difficult to obtain.

They can outsource the holding of goods and raw materials in controlled and secured warehousing facilities, they can also outsource pick up and delivery of both the raw materials and finished products and have the third party logistics partner deliver on predefined schedules.

Often these services go way beyond just the traditional logistics and delivery aspect. Full third party logistics integration is part of the whole supply chain process and a company providing all facets of this process are known as supply chain management service providers.

At Brunel European we don’t pretend to be full cover supply chain provider, however we have a core expertise of logistics management, as well as standard and tailored European and World-wide transportation solutions for any type and size of freight and cargo.

What are the benefits and advantages of using a third party (3PL) logistics?

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Savings in time and money

Time and money saving is the main focus of any third party logistics provider and supplier. A warehouse management provider will have better processes and greater flexibility in packing, handling and storing stock of your products. As will a transport company who will have a wide network of contacts and Partners to move goods world-wide.

These third party logistics companies, as with Brunel European, will already have IT systems in place specifically for these processes, saving companies both time and money in not having to implement their own solutions.

Low capital commitment

With nearly all of the required functions being outsourced it means the client does not have to invest working capital into the development of its own warehouse or transport infrastructure, therefore lowering or freeing up capital to use on other parts of the business.

Thought process

Brunel European understands that outsourcing allows a company to focus on their core business. The reason that 3rd party logistics is increasing in popularity is that more and more companies are looking to become more efficient in business.

At the end of the day commerce requires a sales transaction when we break it down to its simplest format, many companies still do not look at this simple scenario.

It really is impossible to be a leader or expert in every facet of the whole supply chain process. Therefore, it makes sound business sense to let an expert manage the parts that you cannot.

Flexible solutions

A 3rd party logistics partner can offer a level of service flexibility in a geographical context that the client may not be able to provide.

If you have any questions about using a third party logistics provider or would like to find out how we can help lower your costs, then give us a call on Tel: +44 (0) 1268 243610 and one of our expert team will be happy to advise you on how we can help.